The Impact of Economic and Financial Risks on Small and Medium-Sized Enterprises

Abstract

This paper analyzes the impact of economic and financial risks on small and medium-sized enterprises (SMEs), highlighting the main challenges and appropriate risk management strategies. The aim of the research is to identify major risk factors and propose solutions to support SMEs in maintaining their stability and competitiveness. To achieve this objective, the research aims to accomplish the following tasks: • Identifying and classifying the economic and financial risks affecting SMEs • Analyzing the effects of these risks on the performance and sustainability of SMEs. • Proposing effective risk management strategies to reduce the vulnerability of SMEs. The methodology used combines both quantitative and qualitative analysis. The study is based on a review of the specialized literature, an analysis of relevant macroeconomic and financial data, and case studies illustrating the impact of risks on SMEs. Through these methods, the research provides a detailed perspective on the challenges faced by SMEs and the available solutions for minimizing the impact of economic and financial risks. CZU: 334.012.63/.64:330.131.7; JEL: M1